In Q1 FY24, the company’s EBITDA was ₹55 crore, and EBITDA margin stood at 8.4 per cent. The profit before tax (PBT) was ₹16 crore, profit after tax (PAT) was ₹14 crore, and the earnings per share (EPS) (not annualised) was ₹5.
Cosmo First Limited, an Indian company, has reported net revenue of ₹658 crore in the first quarter of fiscal 2024.
The quarter’s results could have been improved by ₹20 crore if not for a one-time inventory loss due to raw material price decline. BOPP demand is rebounding, while BOPET faces an oversupply issue, leading to continued margin pressure.
During the quarter, the BOPP demand has started picking up and demand-supply balance should get restored in the coming quarter(s). In the case of BOPET where the supply is far in excess of demand, it will take many more quarters for the supply-demand gap to bridge. Margins are therefore likely to remain under pressure with little downside risk.
“The export markets showed signs of improvement with better specialty sales. Cosmo with over two third of its revenue coming from BOPP speciality films could withstand the margin pressure better than the industry. We continue to build our specialty films portfolio by adding specialty polyester films including shrink label and sun shield films which would further strengthen the overall margins and also the ability to withstand margin pressures, if any in the future,” the company said in a press release.
The company’s petcare vertical (Zigly) continues to grow rapidly and clocked monthly revenue (GMV) with a run rate revenue of ₹3 crore on the back of expanding retail footprints, innovative sales promotion, and increasing online presence. The acquisition of Petsy, an online venture in the petcare space, is complete and would further accelerate the growth of the petcare vertical.
The speciality chemical subsidiary is set to launch newer adhesives in the second half of fiscal 2024.
“The company is working on multiple growth drivers including specialty BOPET films, sun shield film, rigid packaging, specialty chemicals, petcare, etc. We are optimistic that these initiatives will provide impetus to faster growth of the company in the coming years. In the short-term, we remain focused on increasing specialty sales and growing new businesses,” Pankaj Poddar, Group CEO, Cosmo First, said.
Fibre2Fashion News Desk (RR)
